Syncsort v. Innovative Routines.pdf - Trade Secrets Institute

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UNIX and its related manuals and materials and binds the licensee tomaintain the confidentiality of “any information” related to SyncSortUNIX. Trial Tr. 468:23-469:16, May 5, 2011; Trial Tr. 104:15-104:17,Jan. 20, 2011; Pl. Ex. 441 4.ii. Requiring all Syncsort employees (including clerical employees),contractors or business partners to execute confidentiality agreements thatforbid such parties to copy, remove from Syncsort’s premises, or discloseto anyone outside Syncsort’s direct employ, any information consideredconfidential, including software documentation without prior writtenapproval by a vice president of Syncsort. Trial Tr. 104:3-104:8, Jan. 20,2011; Pl. Ex. 469; Pl. Ex. 584 14(c). Syncsort has also made clear toemployees in its technical support group who assist customers withSyncSort UNIX that they are to keep the SyncSort UNIX languageconfidential. Trial Tr. 404:11-404:21, Jan. 25, 2011.iii. Requiring all SyncSort UNIX resellers and distributors to enter into aReseller Agreement containing confidentiality provisions that bind thereseller or distributor, its customers and its employees. Trial Tr. 108:9-108:13, Jan. 20, 2011; Pl. Ex. 470; Pl. Ex. 584 14(d). The ResellerAgreement serves to ensure that resellers and distributors and theiremployees keep information, such as software documentation,confidential, and that they do not disclose such information to any thirdparty without Syncsort’s prior written approval. See, e.g., Pl. Ex. 470 § 3 1.3, 1.6; § 4 1.1, 12.3, 16.2, 16.3, 19.6.iv. Placing confidentiality legends on all printed and machine readablematerials related to SyncSort UNIX, including the Reference Guide TrialTr. 104:23-105:2, Jan. 20, 2011; Pl. Ex. 584 14(b); Pl. Ex. 114.v. Taking measures, including the use of a firewall, to prevent outsiders fromobtaining access to Syncsort’s internal computer network. Trial Tr.104:12-104:14, Jan. 20, 2011.vi. Utilizing a software key mechanism that links a specific server to eachlicensee to prevent SyncSort UNIX from being run on any unlicensedserver. Trial Tr. 104:18-104:22, Jan. 20, 2011.8
D. Translation and ssu2scl22. Data transformation software is generally licensed either for a set term or inperpetuity. Term licensees generally receive maintenance and support during the term, whereasperpetual licensees typically sign renewable maintenance agreements. Trial Tr. 71:15-73:2, Jan.19, 2011.23. Syncsort sells term licenses. IRI sells perpetual licenses.24. Customers may switch from one software product to another at anytime. But, theymay be dissuaded from doing so because of the cost of translating job-control scripts from thecommand language of one software product to another.25. The incompatibly between the two command languages creates a significantbarrier to switching software vendors because creation of new scripts is a costly endeavor. If acustomer decides to switch software products, the customer must recreate its job-control scriptsto be compatible with the new software.26. In response to this barrier to switching products, in 2000, IRI developed acomputer program—ssu2scl—which can translate scripts written in the SyncSort UNIXcommand language into the CoSORT command language. This translator allows SyncSortUNIX customers to switch to CoSORT without going through the effort of rewriting job-controlscripts.27. The trade secret status of the SyncSort UNIX command language is of great valueto Syncsort because it prevents competitors from using that language to lure away Syncsort’scustomers. Where a customer has hundreds of scripts that must be made compatible with acompeting software product, the cost of script conversion is a key consideration in evaluating theoverall cost of switching to a competing product. Trial Tr. 76:7-76:19, Jan. 19, 2011.9
Page 1 and 2: NOT FOR PUBLICATIONUNITED STATES DI
Page 4 and 5: 6. SyncSort UNIX customers have lar
Page 6 and 7: acceptable data types for various o
Page 10 and 11: Additionally, the cost associated w
Page 12 and 13: 35. On the same page that identifie
Page 14 and 15: 42. IRI’s president, Paul Friedla
Page 16 and 17: Guide in IRI’s possession were di
Page 18 and 19: of the syntax, can always call us.
Page 20 and 21: SyncSort and the names of a handful
Page 22 and 23: Labs. Inc. v. Lenox Labs., Inc., 12
Page 24 and 25: tight access controls on computers
Page 26 and 27: otherwise limited” so that it was
Page 28 and 29: There are a number of cases involvi
Page 30 and 31: operation of the software, without
Page 32 and 33: further finds that IRI knowingly mi
Page 34 and 35: 5. The Balance of Hardships Favors
Page 36: 4. making any reference to ssu2scl

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